As cryptocurrency gains more mainstream adoption, there’s increasing need for more accessibility and real-world applications. However, while FTX looks to relaunch its crypto exchange, many investors seem more focused on a new AI crypto known as Avorak AI.
What happened to FTX?
FTX faced a series of unfortunate events that led to its eventual liquidation and bankruptcy in November 2022. The main factor behind the collapse was a liquidity crisis caused by its token, FTT. CoinDesk’s article on November 2 revealed that Alameda Research, a trading firm associated with FTX and owned by the then CEO, Sam Bankman-Fried, held a substantial amount of FTT. This disclosure prompted Binance to announce its intention to sell its FTT holdings and triggered a sharp decline in the token’s market price.
As a result, a wave of withdrawal requests surged on the FTX platform, forcing the exchange to freeze withdrawals and exacerbating the liquidity crisis. Unfortunately, these efforts were not sufficient to rescue the exchange, and on November 11, FTX, along with Alameda Research and more than 100 affiliated entities, filed for bankruptcy. Subsequently, Sam Bankman-Fried resigned as FTX’s CEO, and John J. Ray III took over the reins. This chain of events marked the downfall of FTX, once the third-largest cryptocurrency exchange by volume.
How much did FTX lose?
It has been widely reported that FTX lost approximately $8.8 billion in customer funds. The losses were attributed to several factors, including unauthorized transactions totaling $432 million and actions of Alameda hedge fund, which allegedly borrowed around $9.3 billion from FTX. These staggering losses had a profound impact on FTX, raising concerns among investors.
FTX relaunching its crypto exchange?
According to sources, FTX is exploring the possibility of relaunching its operations. This comes six months after CEO John J. Ray III announced the formation of a task force to explore the possibility of resuming operations. Despite the alleged illegal activities involving significant parties like Sam Bankman-Fried and Alameda Research, Ray III expressed confidence in the exchange’s underlying business model. To facilitate this relaunch, one option being explored is a joint venture. This would involve compensating the clients affected by FTX’s bankruptcy by offering them stakes in the new organization. Additionally, the exchange will operate under a new brand name to rebuild trust and enhance its reputation.
Avorak AI: Leading in practical use cases and investments
Avorak AI is a recently launched blockchain-based project on the mission to streamline human-led processes through AI-powered solutions. The project has developed an interactive AI which encompasses image creators, chatbots, text generators, trading bots, 3D modeling tools, architectural blueprint drafters, security monitors, and more.
The solutions will be available through AVRK, the platform’s native utility token. The Avorak AI team has developed the solutions using a first-to-market strategy to ensure users gain unmatched capabilities. For example, the Avorak AI trading bot is programmed with a non-code command-line script and can automate trades on multiple exchanges and asset classes. The bot also provides indicators, price predictions, and alerts to changes in market trends or patterns.
AVRK holders are entitled to a 49% split of Avorak AI’s profits through its revenue feedback system. 5% of AVRK’s total supply is allocated to three locked staking pools so that long-term investors can increase their total hold of the project’s market capitalization. AVRK, being deflationary and having a capped supply of 40 million, suggests its price will increase over time.
The Avorak AI ecosystem has displayed a diverse ecosystem, with other developments aside from its AI solutions. For example, the project has NFTs that provide actual utility benefits to their owners.
Avorak AI had a successful initial coin offering (ICO), selling out weeks before its planned launch date. The AVRK token is available on several crypto exchanges, including Coinsbit, PancakeSwap, and Latoken.
Conclusion
Cryptocurrency is gaining more traction and the capabilities of blockchain technology are expanding rapidly. More investors focusing on Avorak AI signifies the growing demand for real-world applications and the imminent rise of AI crypto.
For more information on Avorak AI:
Website: https://avorak.ai
Buy AVRK: https://invest.avorak.ai/register
Disclosure: This is a sponsored press release. Please do your research before buying any cryptocurrency or investing in any projects. Read the full disclosure here.
Photo by Mariia Shalabaieva on Unsplash
